The Senate has commenced investigation into the affairs of Ajaokuta Steel Company Limited and the National Ore Mining Company (NIOMCO) in Kogi State between 2008 to date.
The Senate is to unravel the mystery behind the payment of $496m allegedly made to Mr. Pramod Mittal, Chairman, Global Infrastructure Holdings Ltd (GINL) by the Federal Government in September 2022 as settlement over said contractual disputes.
The Senate, it was gathered, is conducting a holistic investigation into the circumstances that led to the re-concession of NIOMCO even when the initial Concession Agreement was validly terminated by the Yar’adua Administration with positive review by the International Chamber of Commerce, London.
This followed a motion sponsored by the Senator representing Kogi Central, Sen Natasha Akpoti.
To this end, Sen Adeniyi Ayodele Adegbonmire SAN, is to be the Chairman of the investigative panel while Kawu Suleiman is to be the deputy Chairman.
Other members of the committee are: Sen Natasha Akpoti (Kogi Central), Onawo Mohamed (Nasarawa South) Sen Joel Onowakpa (Delta), Sen Onyesoh Allwell Heacho (Rivers East) Abdullahi Yahaya (Kebbi North), Sen Patrick Chukwuba Ndubueze (Imo North), Senator Tokunbo Abiru (Lagos East) and Osita Ngwu (Enugu West).
While the committee is to report back to the Senate in two weeks, they are also to inite and interface with relevant Ministries, Departments and Agencies (MDAs)and other critical stakeholders in the steel sector especially those with interest in Ajaokuta Steel Manufacturing Plant and (all mining company NIOMCO to obtain relevant information and submit a comprehensive report to the Senate regarding the affairs of the two plants between 2018 to date.
The Senate is also urging the Federal Government to review extant policies and laws on steel development in Nigeria with a view to adopting a strategic implementation Plan on Steel Development in Nigeria bearing in mind the importance of steel to Nigeria’s quests for industrialization and economic self-reliance and also investigate alleged incidences of corruption and inefficiency at the Ajaokuta Steel Company Limited and NIOMCO).
This followed a motion sponsored by Sen. Akpoti-Uduaghan, Natasha (Kogi Central).
She said the Ajaokuta Steel Company Limited (ASCI) and the National Iron Ore Mining Company (NIOMCO) located in Kogi State were established sometime in the late 70s by the Federal Government with a potential to put Nigeria on the path of technological and industrial advancement, and establish the country as one of the leading exporters of steel products in the world.
“Notes also that decades after their establishment, the Ajaokuta steel mill and NIOMCO have remained inoperative and unable to produce steel despite seeming efforts by several administrations due to lack of earnest political will and bureaucratic corruption.
“Recalls that as at 1994, when the Tyazurom export (TPE) exited the Ajaokuta Steel Plant on alleged ground that Nigeria did not discharge fully its financial obligation to the TPE, the Ajaokuta Steel Plant was reportedly at 98% completion yet remains inoperative to date;
“Recalls also that sometime in 2001, Nigeria’s hope to have the Ajaokuta Steel Plant completed and put into operation was rekindled following the signing of the Bilateral Agreement between Nigeria and the Russian Federation which was unfortunately diminished following the surreptitious concessioning of NIOMCO and ASCL in June 2003 to unqualified Solgas Energy Limited, a company that lacked both financial and technical expertise as it were uncovered never to be in the business of ore and steel.
“Aware that contrary to the recommendation of the House Committee on Steel in 2004 that Solgas Energy Limited should partner with TPE which has the financial and technical expertise to complete and operate the ASCL and NIOMCO complexes, Solgas Energy Limited instead opted for partnership with another inept company the Global Steel Infrastructure Nigeria Limited (GINL) of India (a.k.a Global Steel Holdings Limited). GINL was alleged to completely run down not only ASCL. and NIOMCO but the Delta Steel Company:
“Observes that upon consideration of the Inuwa Magaji Administrative Panel of Inquiry Report into the GINL’s operations of ASCI, NIOMCO and Delta steel mills, the Federal Executive Council under the leadership of Late President Umaru Yar’adua, unanimously terminated the Concession Agreement 2 April, 2008, citing breach of agreement and unwholesome practices including the fact that the said Concession Agreement was unpatriotically skewed in favor of GINL;
“Further observes that the House of Representative had in the past investigated the Iron and Steel Sector in Nigeria in 2018 with far reaching resolutions aimed at resuscitating the ASCL and ANIOMCO steel mills but such resolutions were either ignored or are yet to be implemented by the Federal Government:
“Disturbed that GSHL’s Pramod Mittal is notorious for dubious and questionable business activities with governments of many steel producing countries from the $253m organized economic crimes in India to embezzlement and asset stripping in Bulgaria, Philippines, Libya, Bosnia, Zimbabwe, Montenegro, Serbia and many more;
“Concerned that while Bosnia arrested and charged GSHL’s Pramod Mittal with organized crime and Bulgaria jailed GSHL’s management staff for economic crimes; Nigeria may have yet again fallen victim to GINL Pramod’s sharp contract fraud in respect of the payout of $496m in 2022. This comes years after a comical re- concessioning of NIOMCO to the same GINL in August 2016. These sadly facilitated by unpatriotic Nigerians occupying trusted government offices;
“Alarmed that Nigeria currently expends about $3.3bn annually on steel imports and quite saddened that a nation blessed with abundant natural ore resources yet plagued by moribund Ajaokuta and Delta steel that have become conduits pipes for diversion of public funds at the expense of Nigerian tax payers;
“Worried that there exists an abnormal management structure at the Ajaokuta Steel Complex whereby a Sole Administrator has unilaterally decided upon the steel mill’s corporate affairs for the past 12 years. This has further worsened the inefficiency of the moribund company with the recently queried 33 billion naira electricity debt by President Tinubu,” she said.
While the Senate setup the investigative panel, deputy Senate President Barau Jibrin who presided over plenary commended Natasha for bringing the motion.
He said the motion will help in bringing more revenue to the government and also help in the irons rots that will help in building infrastructure in the country.
Speaking, Sen Solomon Adeola said salaries and wages of staff of moribund companies are just being paid in billions of naira, stressing the need to reposition the Ajakuta steel company and make it function optimally due to the value it will add to the steel market.
On his part, Sen Sani Musa said Ajakuta steel company has been moved from one fraudulent contractor to another, insisting that the investigation will help unravel so many frauds in the companies.